Posted on 06/14/2012 8:07:20 PM PDT by InvisibleChurch
Spain and Italy, under increasing fire in Europe's debt crisis, promised new measures to repair their public finances as their soaring borrowing costs raised new alarm ahead of a cliffhanger Greek election.
But German Chancellor Angela Merkel rebuffed pressure from EU partners and the United States for Europe's most powerful economy to underwrite debt or guarantee bank deposits in the single currency area.
Spain's 10-year bond yield hit a euro lifetime high above seven per cent on Thursday - a danger level above which Greece, Ireland and Portugal were driven to seek international rescues - despite last weekend's euro zone agreement to lend Madrid up to 100 billion euros ($125 billion) to recapitalise ailing banks.
"It is not a situation that can be maintained over time... and I am convinced that we will continue to take more measures in the coming days and weeks to help bring it down," Spanish Economy Minister Luis de Guindos told reporters in the corridors of parliament.
In Rome, Parliamentary Affairs Minister Piero Giarda, in charge of a public spending review, said Italy will seek to cut five billion euros in state administration spending this year instead of a previously announced 4.2 billion euros. The money saved would help fund areas hit by two earthquakes last month.
Moody's Investor Service slashed Spain's sovereign credit rating by three notches to Baa3, just one level above junk, late on Wednesday, citing the government's "very limited" access to international debt markets and the weakness of the economy.
The downgrade added to a sense of emergency in financial markets ahead of an election in debt-plagued Greece on Sunday that could deliver a mandate to an anti-bailout party.
(Excerpt) Read more at emirates247.com ...
Doesn't sound like "saving" to me.
The words “bank holiday” are coming very soon.
Everyone has to know that Europe is planning to default on their non-sovereign euro debt.
Everyone has to know that Europe is planning to default on their non-sovereign euro debt.
What do you make of today’s rumors?
The next level is "BaaBaaBlackSheepHaveYouAnyWool?"
Bomb shelters might be better.
The rumors are designed to fleece more money from stupid governments and central banks.
Eh, Spain’s got about a 500 billion dollar buffer before they will really start to be in serious trouble.
So they’ve cut into about 1/5th of their buffer. Not too shabby.
Gone from about 70 up to 75 debt/gdp with this announcement. Still about 10 points below Germany/France.
Germany’s going to lend them another 200 billion before they’ll even consider putting the Germans at risk to try to save things.
So we shall see, interesting times!
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